- KRA's stock share price has done very poorly compared to where it was a year ago: Despite any rallies, the net result is that it is down by 40.41%, which is also worse that the performance of the S&P 500 Index. Investors have so far failed to pay much attention to the earnings improvements the company has managed to achieve over the last quarter. Naturally, the overall market trend is bound to be a significant factor. However, in one sense, the stock's sharp decline last year is a positive for future investors, making it cheaper (in proportion to its earnings over the past year) than most other stocks in its industry. But due to other concerns, we feel the stock is still not a good buy right now.
- The gross profit margin for KRATON PERFORMANCE POLYMERS is currently lower than what is desirable, coming in at 28.10%. Regardless of KRA's low profit margin, it has managed to increase from the same period last year. Despite the mixed results of the gross profit margin, the net profit margin of 12.20% trails the industry average.
- KRA's debt-to-equity ratio of 0.71 is somewhat low overall, but it is high when compared to the industry average, implying that the management of the debt levels should be evaluated further. Regardless of the somewhat mixed results with the debt-to-equity ratio, the company's quick ratio of 1.43 is sturdy.
- The net income growth from the same quarter one year ago has exceeded that of the Chemicals industry average, but is less than that of the S&P 500. The net income increased by 21.7% when compared to the same quarter one year prior, going from $38.60 million to $46.98 million.
- Despite its growing revenue, the company underperformed as compared with the industry average of 21.7%. Since the same quarter one year prior, revenues rose by 16.4%. Growth in the company's revenue appears to have helped boost the earnings per share.
NEW YORK ( TheStreet) -- Kraton Performance Polymers Inc (NYSE: KRA) has been downgraded by TheStreet Ratings from hold to sell. The company's weaknesses can be seen in multiple areas, such as its generally disappointing historical performance in the stock itself and poor profit margins. Highlights from the ratings report include: